Kennedy Wilson acquires 573K sq. ft. office campus in Greater Bellevue for $153M
Global real estate investment company Kennedy Wilson announced that the company acquired 90 East, a 573,000 sq. ft. office campus consisting of three class-A office buildings in greater Bellevue, Washington, for $153 million in an off-market transaction. Kennedy Wilson invested $76 million of equity, and also secured a 10-year interest-only loan for $77 million at a fixed-rate of 3.85%.
“We are pleased to expand our presence in Washington by acquiring this high-quality office asset below replacement cost in an excellent submarket,” said Matt Windisch, Executive Vice President of Kennedy Wilson. “With two investment grade companies fully occupying the building, 90 East offers a strong initial cash flow yield and the potential to earn attractive long-term risk adjusted returns for the company.”
Built between 1999 and 2001 on a 20-acre site, 90 East is an institutional quality office campus in Issaquah, Washington which is 100% leased to Microsoft and Costco with a weighted-average lease term of 5.3 years. The property is 10 miles from downtown Bellevue and within close proximity to many Fortune 500 companies, including Costco, Microsoft, Amazon, Starbucks, Nordstrom, and Expedia. During the last 12 months, the property produced approximately $13 million in net operating income.
Kennedy Wilson now has an ownership interest in 1.4 million sq. ft. of office and 10,430 multifamily units in the State of Washington.
Source: Kennedy Wilson